Stakeholders Is Any Company Too Big To Essay

Length: 3 pages Sources: 3 Subject: Government Type: Essay Paper: #9025749 Related Topics: Aig, Bailouts, Barack Obama, Value Creation
Excerpt from Essay :


Is any company too big to fail? That was the question of the day facing political leaders in September 2008 as the market was rocked by a series of announcements from AIG and other companies concerning what some experts would call catastrophic losses from mortgage-backed securities. AIG happened to be the ringleader of those companies as it announced that it lost nearly $25 billion in one quarter. The U.S. government quickly discerned that the world markets would suffer great difficulties if AIG was allowed to go under and pledged billions of dollars to AIG in an effort to stabilize worldwide markets. When all was said and done, it cost the American taxpayers nearly $182 billion to save AIG from the results of its own actions.

A scenario like the one which AIG engendered leads to an interesting question; who are the stakeholders of AIG, who stood to benefit, who stood to suffer and who made the decisions that brought about such a calamity in the first place? The name at the top of the letterhead for AIG at that particular time was Robert B. Willumstad. As this paper attempts to discern who has influence as a stakeholder, his name certainly has to be listed as a primary force or focus, except for one little item; he had only been chairman for approximately three months before he was forced out by the federal government. The question remains then; who were the stakeholders then and who are the AIG stakeholders now?

Certainly one of the primary stakeholders is the government of...


Whereas previously the government was an external stakeholder with small influence on a publicly owned entity's day-to-day operations, it can now be described as a 92.5% owner of AIG with enough influence to terminate Willumstad as the CEO and replace him with their own director; Edward M. Liddy.

That's a lot of influence, perhaps more than was necessary to assume in this specific case, which is where the next primary stakeholder comes into play; Mr. Barack Obama and his administration. Though he was only following the same path that the previous administration had initiated concerning AIG, the impetus was all his, as was the risk of being perceived as being too heavy-handed, too big government, too socialistic even though he had not even taken office. Obama and his administration set the tone early and often as they commanded the route for AIG, and AIG obligingly followed.

Additional stakeholders, then and now, are the American people, and though they could wield influence far greater than any other group, they are relatively helpless due to their lack of concern, their state of confusion, or their total unconcern about the path which Obama and AIG are treading. The American public, though derided by liberals as being dumb as rocks, are actually pretty intelligent. In the case of AIG, the American public saw the heavy-handed measures of the current administration and decided that caution was the better part of valor. For the most part, the public stood on the sidelines with no voice.

Additional stakeholders were the shareholders who had forked over hard-earned money to purchase shares of AIG and who, over the course of a very…

Sources Used in Documents:


American General Life Companies (2011) History of American General Life, accessed on March 25, 2011 at website:

Bolton, D. & Nie, R.; (2010) Creating value in transnational higher education: The role of stakeholder management, Academy of Management Learning and Education, Vol. 9, Issue 4, pp. 701 -- 714

deBussy, N.M. & Kelly, L.; (2010) Stakeholders, politics and power: Towards an understanding of stakeholder identification and salience in government, Journal of Communication Management, Vol. 14, Issue 4, pp. 289-305

Cite this Document:

"Stakeholders Is Any Company Too Big To" (2011, March 25) Retrieved September 26, 2022, from

"Stakeholders Is Any Company Too Big To" 25 March 2011. Web.26 September. 2022. <>

"Stakeholders Is Any Company Too Big To", 25 March 2011, Accessed.26 September. 2022,

Related Documents
Analyzing the Stakeholders and Ethics
Words: 1334 Length: 4 Pages Topic: Human Resources Paper #: 67981167

Stakeholders and Ethics Stakeholders in an Organization Stakeholders are those individuals who have a stake, a claim or an interest in a company or organization. Such individuals get different types of rewards, such as organizational status, returns or power, because they contribute some sort of expertise, skill and/or knowledge to the organization. Dell Inc. is one of the biggest global tech corporations that build and sell PCs and computer related hardware. In

Stakeholder Profile Internal and External
Words: 2187 Length: 6 Pages Topic: Law - Constitutional Law Paper #: 63707200

The government should have ultimate powers on the control of handguns, and possession of firearms made illegal to avoid massacres. If the U.S. had stringent Laws on firearms, the school massacres would not be happening. It is time for the U.S. To accept that the gun laws need immediate reform because of the recurring school mass killing and the ludicrous gun legislation (Blair, 1999). There are many ways on how

Stakeholders in Home Health Care
Words: 994 Length: 3 Pages Topic: Healthcare Paper #: 55008611

Stakeholders in Home Health Care Stakeholders In thinking about the info set out in the previous researches we have to keep in mind that the overarching rationale for the participation of any of the stakeholders is the advantageous results that their participation gives them or to those they stand for, instances of these results are set out in the table. When it come to governments this could well be renovations in hygienics,

Company Mission, Vision, Stakeholders Strategic Management Starts
Words: 620 Length: 2 Pages Topic: Transportation Paper #: 9715286

Company Mission, Vision, Stakeholders Strategic management starts vision mission. It consists analysis, decisions, actions organization undertakes order create sustain competitive advantages. For project, pick a company ( Harley Davidson), preferably, modules, work understand strategy . Ducati -- passion leading from bankruptcy to success Ducati is a name that most motorcycling enthusiasts are likely to associate with passion and brute force. The Italian bike manufacturer is known for making motorcycles designed for a

Stakeholders Relations and Financial Performance
Words: 1733 Length: 6 Pages Topic: Business Paper #: 39246651

Also, businesses should be open to the idea of changing the way these relationships are formed and maintained to make way for the changing business environment. "Changing the prevailing relationship a firm has with its stakeholders offers an opportunity for innovation and the economic rewards that accompany such innovation" (Harting, Harmeling & Venkataraman, 2006, p.44). Conclusion In short, different stakeholder groups have a big impact on the performance of a company. Their

Stakeholder Management Nike Inc. NYSE:
Words: 1489 Length: 5 Pages Topic: Business Paper #: 62924927

More recent surveys have seen Nike continue to trail the industry average, indicating a long-term trend of only somewhat meeting customer expectations (ASCI, 2009). Wholesale and retail channels are a critical external stakeholder because of the role that they play in the company's route to market. Without support of wholesalers and retailers, Nike could only rely on its own-branded stores to bring its shoes and apparel to consumers. Nike's distribution